If it’s £100k between the six pensions then it’s £1,500 for 20 hours work. That’s £75 per hour which wouldn’t clear into the company account for 4-6 months (usual time it’s takes to transfer multiple pensions) and wouldn’t cover the PI insurance for one month. As I say, just trying to give some perspective from the industry. (Now if it’s £2m in total then it’s starting to look expensive)That's a lot better if it's one off. I agree with you - I just can't help but think it's expensive. But then again I feel relatively comfortable with these types of things, so it's less daunting for me to do it myself perhaps.
Lucky fucker4 weeks today I move to the Far East and semi-retirement (wife got a fancy teaching job and I’ll just look after my existing clients and mainly play golf). Will be two months before my 40th although I fancy maybe becoming a diving or sailing instructor in my spare time to keep my active and bring a few extra pennies in.
And the day after you retire you die and all you have done is squirrel away money and lived on beans and toast. (Hopefully you won't)I read somewhere that 60% of people have to drastically rethink their retirement plans in the 2 years prior to their planned retirement date. Generally because they had failed to prepare for the future.
The best advice I was given was to have three seperate bank accounts.
1. One for all bills to come out of.
2. One for shopping, leisure and normal day to day expenses.
3. One for savings.
We played around with the levels for the general day to day expenses but it seems like £35 a day covers everything we need. Understanding your outgoings and getting used to living on a managable budget give you a clear indication of what your living expenses are in advance of retirement.
It also ensures that if you are disciplined enough that any surplus money goes into the savings account and only comes out if there is some unforeseen need.
The thing that shocked me was how little we actually need, and we are now in a fortunate position where we can get 50% of our joint income away each month, and has highlighted to me just how much we used to waste just because it was there.
My defined benefit pension which has lost 10k in the past 12 months pays out a guaranteed 4K pa on a now 73k pot so obviously it's a decent rate compared to annuities. I think I'm right in saying it doesn't matter if the fund is worth a million or 3p, the pension stays the same. The only bugbear is only £533 of the £4K pa increases with inflation, the rest remains the same and I can't take 25%, just a fixed figure of just over 5k. If I transferred the pot it's full value but a Financial Advisor my sister works for can't sign off the transfer as his Indemnity Insurance doesn't allow him to do so, anything I can do?Yes, pretty much.
The £280k should actually grow with inflation. But the value of what's left in the pot will remain the same.
Sounds like one of the better ones that mate. Glad it worked out for you.Someone mentioned "dreaded equity release"
Due to the financial crisis a decade ago I lost quite a lot of money on my business, so much so I had to remortgage my house which was due to be paid off in 2013. So here I am at 62 with 34k mortgage outstanding for another 6 years and paying nearly 600pm. I've been a member of the Nationwide for a long time and I called about their lifetime mortgages.
I've had one approved and it works out like this:
I pay 136 per month for life, I look at that as about 35 a week rent.
Ive upped the amount to 50k and put the difference in my early retirement pot, when me and Mrs H die we leave a house with a current value of 200k meaning we still leave 150k. If we can't afford to pay the 136 (won't happen) we have the option to not pay and accrue the debt with the 50k, after 25 years that would be about 100k still leaving a chunk of money to pass on.
There's a charge for Solicitors usually about 700 but the Nationwide fund it by giving you a grand.
I wouldn't touch the ER companies out there but Nationwide have done over 7k of the mortgages since they started to offer them.
What about £3m???!!!lolIf it’s £100k between the six pensions then it’s £1,500 for 20 hours work. That’s £75 per hour which wouldn’t clear into the company account for 4-6 months (usual time it’s takes to transfer multiple pensions) and wouldn’t cover the PI insurance for one month. As I say, just trying to give some perspective from the industry. (Now if it’s £2m in total then it’s starting to look expensive)
Yeah I’d drop the percentage down a bit....What about £3m???!!!lol
To be honest it sounds to me like you're getting a good deal. If the pot becomes worth more than £100k (25 x £4k) then it would make sense to transfer, but until that point, you're doing pretty well.My defined benefit pension which has lost 10k in the past 12 months pays out a guaranteed 4K pa on a now 73k pot so obviously it's a decent rate compared to annuities. I think I'm right in saying it doesn't matter if the fund is worth a million or 3p, the pension stays the same. The only bugbear is only £533 of the £4K pa increases with inflation, the rest remains the same and I can't take 25%, just a fixed figure of just over 5k. If I transferred the pot it's full value but a Financial Advisor my sister works for can't sign off the transfer as his Indemnity Insurance doesn't allow him to do so, anything I can do?
Oh dearAnd the day after you retire you die and all you have done is squirrel away money and lived on beans and toast. (Hopefully you won't)
If the last 15 months or more have shown is live for now.
The rest will take care of itself. I have 2 kids, they know if I need help they will be asked.
My father in law being loaded probably helps my thinking as there only my wife left in his family ;)
Unfortunately you might not die the day after you retire and you may live for another 30 years.And the day after you retire you die and all you have done is squirrel away money and lived on beans and toast. (Hopefully you won't)
If the last 15 months or more have shown is live for now.
The rest will take care of itself. I have 2 kids, they know if I need help they will be asked.
My father in law being loaded probably helps my thinking as there only my wife left in his family ;)
To be frank, i don't want 'care' when i'm 97.Unfortunately you might not die the day after you retire and you may live for another 30 years.
And your father in law will not be loaded if he lives to an old age in a care home for many years.
Better to plan ahead and take advantage of the free money on offer in pension tax relief.
My dad's estate is worth about 300k but I've not planned for a penny. He's 88 and could have a stroke tomorrow and end up spending the lot on care. I'm currently his unpaid carer and miss out on quite a few things to look after him (no holiday for 2 years before lockdown as an example ) but there may come a stage where I can't cope anymore and he would need a care home facility and all the cash that requires.There are far too many idiots expecting inheritance to feather their nests.
It’s why they expect the tax payer to pick up mum’s care home fees whilst they inherit the house.
Me neither. But I might need care. I might not have much choice.To be frank, i don't want 'care' when i'm 97.
Life can change in the blink of an eye and i'm inclined to like Mayo's attitude.
And the day after you retire you die and all you have done is squirrel away money and lived on beans and toast. (Hopefully you won't)
If the last 15 months or more have shown is live for now.
The rest will take care of itself. I have 2 kids, they know if I need help they will be asked.
My father in law being loaded probably helps my thinking as there only my wife left in his family ;)
That sounds like you are going to piss all your money up the wall then when you run out go to your kids asking for more.And the day after you retire you die and all you have done is squirrel away money and lived on beans and toast. (Hopefully you won't)
If the last 15 months or more have shown is live for now.
The rest will take care of itself. I have 2 kids, they know if I need help they will be asked.
My father in law being loaded probably helps my thinking as there only my wife left in his family ;)
This is not a plan I would recommend.And the day after you retire you die and all you have done is squirrel away money and lived on beans and toast. (Hopefully you won't)
If the last 15 months or more have shown is live for now.
The rest will take care of itself. I have 2 kids, they know if I need help they will be asked.
My father in law being loaded probably helps my thinking as there only my wife left in his family ;)